2018.01.1709:55:00UTC+00Crypto News Update

The bloodbath in the cryptocurrency market extended into Wednesday with severe declines in both prices and market capitalization. Going with the flow, the BitConnect coin tanked more than 90 percent as the company said it's shutting down its platform and cryptocurrency exchange. Amid all the gloom, two ETFs, which are focused on investing in global companies involved in blockchain innovation are set to hit the market on Wednesday.

Here is a wrap up of the main news from over the last 24 hours:

1. Bitcoin In Free-fall On Regulation Worries

Bitcoin and other major cryptocurrencies extended their sharp fall from Tuesday into Wednesday morning on prevailing concerns of South Korea and China, the two leading crypto markets, planning severe crackdown on the digital currency market. Tuesday's slide in cryptocurrencies was mainly triggered by comments from the South Korean finance minister Kim Dong-yeon, who said in an interview to a local radio that banning digital currency exchanges was "a live option." In China, the People's Bank of China Vice Governor Pan Gongsheng sought a ban on centralized trading of virtual currencies and individuals and businesses facilitating such activities, Reuters reported Tuesday, citing an internal memo.

2. Bitconnect Platform Shuts Up Shop Causing Coin To Tank 90%

Controversial cryptocurrency Bitconnect Coin, which was suspected of being a Ponzi scheme, announced that it is shutting down its lending and exchange platform. The digital currency's price plummeted more than 90 percent in response to the news. Bitconnect said on its website that the lending operation is winding up immediately with the release of all outstanding loans, while the BCC exchange platform will close in 5 days. The management cited multiple reasons for halt of lending and exchange platform, mainly the cease-and-desist letters it received recently from the Texas State Securities Board, and from the North Carolina Secretary of State Securities Division.

3. Two Blockchain ETFs To Hit Market

The investing world will be presented with two new products on Wednesday that try to cash in on the blockchain technology that underlies Bitcoin. Reality Shares Inc. and Amplify Investments LLC are launching their Exchange-Traded Funds, or ETFs, focused on investing in companies that lead in the research and development of blockchain and invest in the technology to generate revenue. Concerned over the abuse of the word 'blockchain' by companies to boost their image and stock price, the U.S. Securities and Exchange Commission reportedly asked both firms to drop the word if they are not investing in companies that derive a significant portion of their revenue from such technology.

4. T. Boone Pickens Says Cryptocurrencies A Real Turnoff

American oil tycoon and financier T. Boone Pickens is not at all enthusiastic about cryptocurrencies. The reason is the term itself. "At 89, anything with the word "crypt" in it is a real turnoff for me," the 89-year old famed Texas corporate raider said, in a reply to a question on his Twitter account. A cryptocurrency is a digital asset that works on a medium that uses cryptography, the science of hiding information from prying eyes, to secure its transactions.

5. Telegram Plans $1.2 Bln ICO For Native Currency

Private messaging app Telegram is planning a $1.2-billion Initial Coin Offering or ICO to develop a blockchain to combat bitcoin and ethereum. A private token sale in February is expected to raise around $600 million, which will be the largest of its kind. A public sale is planned for March. According to a Business Insider report, Telegram's ICO will be to support Telegram Open Network or TON blockchain platform which will host a new generation cryptocurrencies and decentralized applications. The investors participating in the ICO will receive TON tokens, known as Grams, which might not be listed until 2019.

Current Prices

As of 9.25 am ET on Wednesday, Bitcoin was down 19.03 percent at $9.700.01 and Ethereum plunged 26.77 percent to trade at $817.97 on Coinbase.